Deutsche Telekom Eyes Stake in Wi-Fi Operator

By

Stephan Doerner And

Archibald Preuschat

Jan. 26, 2013 12:34 p.m. ET

Germany's largest telecommunications company, Deutsche Telekom AG, is considering a stake in Wi-Fi operator Fon to cope with exploding mobile data traffic, according to people familiar with the negotiations.

Deutsche Telekom and Fon, founded in 2006 by telecom entrepreneur Martin Varsavsky, have already signed a letter of intent, these people said. The size of the stake and its valuation remain unclear, they added.